Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  Teradata Corporation    TDC

Delayed Quote. Delayed  - 09/23 10:02:01 pm
30.72 USD   +0.52%
09/25 TERADATA : launches accelerators for IoT
09/19 TERADATA : Gluent Announces Data Offload Support for Microsoft SQL S..
09/15 TERADATA : TD Bank and Podium Data Finalists in the Teradata 2016 EP..
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

Teradata, IBM Agree To Buy Digital Marketing Providers

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/02/2012 | 09:13pm CEST

--Teradata and IBM each to buy marketing technology companies

--Both are targeting the area to help drive growth

--Deals expected to close this quarter

(Updates throughout with details about IBM's deal and analyst comments.)

 
   By Shara Tibken 
   Of  
 

Teradata Corp. (>> Teradata Corporation) and International Business Machines Corp. (IBM) on Wednesday each unveiled agreements to buy digital marketing technology companies, bolstering their offerings in the sector and heightening their rivalry.

Teradata said it agreed to buy German firm eCircle, which helps marketers create targeted digital campaigns through email, social media and mobile devices. Such cloud-based products allow customers, like European retailer Otto Group, to send personalized digital messages to their clients and boost revenue.

IBM, meanwhile, said hours after Teradata's announcement it is acquiring Tealeaf Technology, a provider of analytics software that helps organizations gain insight into consumer behavior online and on mobile devices. The technology allows marketers to glean real-time information to improve customer support and website usability, tailor marketing campaigns and increase online purchase conversion rates.

Neither company disclosed financial terms of their deals. Both acquisitions are expected to close in the current quarter.

Teradata and IBM--as well as other tech companies such as Oracle Corp. (ORCL)--compete in the market for data analytics, technology that helps companies sift through massive amounts of information to solve business problems or make predictions. Marketing is one of the main areas targeted for analytics, with many organizations seeking to automate and gain real-time insight into customer buying habits.

While the two acquired companies don't directly compete, they both fit into IBM and Teradata's overall rival strategies, Forrester analyst Rob Brosnan said.

"Both are looking to fill out different components of their marketing platforms," he said. "Marketers increasingly are spending a lot of their own budgets--on average, about 30%--on this marketing technology, and IBM and Teradata want to be where the money is."

The large technology providers have been active in acquiring companies in the sector. The eCircle buy marks Teradata's second marketing purchase in the past couple years. The company acquired marketing-management company Aprimo for $525 million in late 2010. And IBM, which has dubbed the area "smarter commerce," has spent more than $3 billion to acquire similar companies.

Teradata Chief Marketing Officer Darryl McDonald said the price his company is paying for eCircle isn't material to financial results, but the acquisition should "start being incremental to business" in 2013.

"We are very excited about the additional impact it will have on our business," McDonald said. "They have over 1,000 customers and have been growing in the 25% range over the last five years and profitable for the last five years."

Teradata plans to offer eCircle's technology as a standalone product, as well as integrate it with Teradata's Aprimo marketing-management business.

"By the end of the year, we'll have a fully integrated offering where we can do end-to-end campaign management," said Bob Boehnlein, president of Teradata's Aprimo business.

He said Teradata will now be able to not only run companies' marketing functions with its current applications but also deliver the messages marketers want to distribute. And Teradata will be able to use its business intelligence technology to analyze the effectiveness of the messages, grow existing customers, attract new customers and increase revenue.

eCircle's customer base is predominantly in Europe, but Teradata plans to expand its presence globally. Executives said the company will be setting up two data centers in the U.S. this year and replicating the technology for North America and South America customers. Next year, it will take a similar approach in Asia.

"This is a Big Data problem for marketing organizations and chief marketing officers," McDonald said. "And it's a big market opportunity for Teradata."

Tealeaf, meanwhile, has over 450 customers, including 30 of the Fortune 100 companies. Most of the customers, which include giants like Dell Inc. (DELL) and Wells Fargo & Co. (WFC), are in financial services, travel, retail and communications services. IBM said it plans to integrate San Francisco-based Tealeaf into its enterprise marketing and management group.

"With these new capabilities from Tealeaf, we can not only provide chief marketing officers and other marketing leaders the qualitative insights into how customers actually experience their brands, but show them how to react in real time across marketing, sales and service," Craig Hayman, IBM general manager of industry solutions, said in a press release.

-By Shara Tibken, Dow Jones Newswires; 212-416-2189; shara.tibken@dowjones.com

Stocks mentioned in the article : Teradata Corporation
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on TERADATA CORPORATION
09/25 TERADATA : launches accelerators for IoT
09/19 TERADATA : Gluent Announces Data Offload Support for Microsoft SQL Server and Te..
09/15 TERADATA : TD Bank and Podium Data Finalists in the Teradata 2016 EPIC Awards fo..
09/15 TERADATAS MARKETING APPS ARM SWALLOW : Mapp Digital
09/13 TERADATA : Debuts Agile Analytics Business Consulting
09/13 TERADATA : Customer Journey Analytic Solution Creates Behavioral Insights to Del..
09/13 TERADATA : Debuts Agile Analytics Business Consulting New RACE services leverage..
09/13 TERADATA : 's Customer Journey Analytic Solution Creates Behavioral Insights to ..
09/12 TERADATA : Announces the World’s Most Powerful Analytic Database, Availabl..
09/12 TERADATA : Borderless Analytics Turns Hybrid Clouds into a Single Analytic Ecosy..
More news
Sector news : IT Services & Consulting - NEC
09/25DJTWITTER : Salesforce Weighs Twitter Bid to Spur Growth
09/24DJSalesforce Circles Twitter -- WSJ
09/23DJTwitter Shares Surge on Takeover Report--6th Update
09/23DJTwitter Shares Surge on Takeover Report -- 7th Update
09/23DJTWITTER : Shares Surge on Takeover Report--5th Update
More sector news : IT Services & Consulting - NEC
News from SeekingAlpha
08/02 TERADATA : Could This Be The Start Of Something Big?
08/02 Teradata (TDC) Victor L. Lund on Q2 2016 Results - Earnings Call Transcript
08/02 Teradata beats by $0.11, beats on revenue
08/01 Notable earnings before Tuesday?s open
06/07 ESG Investing Is Dead... Long Live ESG Investing!
Advertisement
Financials ($)
Sales 2016 2 297 M
EBIT 2016 453 M
Net income 2016 184 M
Finance 2016 127 M
Yield 2016 -
P/E ratio 2016 27,85
P/E ratio 2017 15,68
EV / Sales 2016 1,69x
EV / Sales 2017 1,67x
Capitalization 4 006 M
More Financials
Chart TERADATA CORPORATION
Duration : Period :
Teradata Corporation Technical Analysis Chart | TDC | US88076W1036 | 4-Traders
Full-screen chart
Technical analysis trends TERADATA CORPORATION
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 23
Average target price 28,6 $
Spread / Average Target -6,9%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Victor L. Lund President, CEO & Class III Director
Jim M. Ringler Chairman
Stephen Mark Scheppmann Chief Financial Officer & Executive Vice President
Stephen Brobst Chief Technology Officer
David E. Kepler Independent Class I Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
TERADATA CORPORATION16.28%4 006
INTERNATIONAL BUSINESS..12.61%148 137
TATA CONSULTANCY SERVI..-1.23%70 889
INFOSYS LTD-5.96%35 748
COGNIZANT TECHNOLOGY S..-9.35%33 024
NETEASE INC (ADR)36.52%32 531
More Results